In its current economic outlook, the OECD is reducing expectations: it is forecasting global economic growth of 2.2 percent for the coming year – the previous forecast was 2.25 percent – and 2.7 percent for 2024.
Asia will be the main engine for growth in the next two years. She expects the biggest increase in the next two years with 5.7 and 6.9 percent for India.
Low growth for Europe
On the other hand, Europe, North and South America will see very little growth, according to the report. For the USA and the euro zone, the OECD expects growth of 0.5 percent in 2023.
The forecast for Austria is also sobering: After an upturn of 4.5 percent this year, economic growth is expected to be 0.1 percent in 2023 and 1.2 percent in 2024.
Fighting inflation “top priority”
The unification of the industrialized countries sees the main reason for the weak global economy in the war between Russia and Ukraine. The OECD sees tackling high inflation by raising interest rates as its top priority, the report reveals.
This strategy is already beginning to pay off, as Brazil is showing. The central bank acted quickly there. But also in the US, the latest data should point to progress in fighting inflation.